A Calgary group managing and buying Case IH dealerships across the Prairies plans to “slow down on acquisitions” in fiscal 2011.
Publicly-traded Rocky Mountain Dealerships operates 37 full-service ag and construction dealerships across the West, mostly selling Case IH and Case machinery. The company on Tuesday reported 2010 year-end profit of $15.5 million on $633.4 million in revenue, up from $15.2 million on $555.8 million in fiscal 2009.
“Both our construction and agricultural stores grew organically, and through acquisitions in the fourth quarter,” CEO Brian Taschuk said in Tuesday’s release.
In all, he said, “we acquired 12 new locations in the past year and we expect to slow down on acquisitions this year to ensure they are properly integrated and performing to our expectations.”
The company since late September has bought J+B Equipment of Kindersley, Sask., Alberta Case IH dealer Agritrac Equipment and Alberta New Holland dealer K+M Farm Equipment.
Given current commodity prices, recent economic trends in the construction sector and the opportunity to “fully realize the synergies available” from the company’s recent acquisitions, Rocky Mountain is “optimistic heading into 2011,” he said.
Sales during 2010 included $333.6 million in new units and $189.3 million in used units, up from $300.9 million and $156.6 million respectively in 2009.